KEIR Starmer has said Labour could negotiate "a new single market relationship" with the EU after Brexit.
The Shadow Brexit Secretary said options for retaining the benefits of the single market and customs union "should not be swept off the table" as he also mentioned a new bespoke trade deal.
Sir Keir told the party's conference in Brighton Labour would negotiate a deal "that retains the benefits of the customs union and the single market".
He said: "Options for achieving that end should not be swept off the table.
"Subject of course to negotiations, remaining in a form of customs union with the EU is a possible end destination for Labour.
"We are also flexible as to whether the benefits of the single market are best retained by negotiating a new single market relationship, or by working up from a bespoke trade deal.
"The outcome is what matters."
He said Labour would not have "no rash, ideological red lines preventing a sensible deal".
He added: "No fantastical 'blue sky' proposals. A pragmatic approach.
"Labour are now the grown-ups in the room. We stand ready to take charge of the negotiations.
"Not acting for narrow political gain, but in the national interest."
Sir Keir explained that Labour would remain in a customs union and the single market during any transitional deal; a stance that has now been adopted by the UK Government.
"Let's see if that survives contact with Tory Party conference next week," he declared.
The Shadow Brexit Secretary also said Labour would negotiate a deal that would ensure continued co-operation in all fields with EU partners.
He also said that Labour was "ready to take charge of the negotiations" and deliver a "sensible" Brexit that respected the result of the referendum.
The Labour leadership is under pressure to commit the party to staying in the single market and maintain free movement after Brexit. It has come under fire after delegates decided against having a full debate and vote on EU withdrawal.
Jeremy Corbyn has made clear he has deep reservations about the restrictions which single market membership could place on a future Labour government's ability to intervene to support UK industry.
But John McDonnell, the Shadow Chancellor, has suggested Labour might support membership of a “changed” single market where free movement was reformed to prevent workers’ pay and conditions being undercut.
Sir Keir said: "The way the Tories are handling Brexit tells you a lot about their competence - or should I say incompetence.
"But it also tells you about their character. About their dogmatic disregard of the national interest.
"About their sheer sense of entitlement, about their post-imperial delusions, about their willingness to put other people's jobs at risk."
Responding to the speech Tom Brake for the Liberal Democrats said Sir Keir happily condemned the Tories for a lack of vision on Brexit but the reality was Labour was "just as clueless".
He said: "It is misleading for him to pretend that some new customs arrangement can be reached which doesn’t cause massive disruption to British trade.
"Instead of joining the Tories in the land of fairy tales, Labour should be fighting with the Liberal Democrats to maintain membership of the single market and customs union. There would be a parliamentary majority if Corbyn and his comrades got off the fence.
"Ultimately, it must be up to the people, not Labour, Tory, or Lib Dem MPs, to decide whether the final deal is good enough," he added.
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